Summary

Two studies reveal that Walmart’s entry into communities lowers household incomes by 6% over 10 years and increases poverty by 8%, even when accounting for cost savings.

Its practices, such as undercutting competitors, suppressing wages, and squeezing suppliers, harm local economies by reducing employment and forcing smaller businesses to close.

Walmart’s “monopsony power” enables it to pay lower wages and dominate suppliers, compounding these effects.

The findings challenge the idea that low prices alone benefit communities, emphasizing long-term economic harm.

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Non-paywall link

  • @[email protected]
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    372 days ago

    Hard to start a business when your competitor is Walmart.

    It’s also hard to maintain an existing business when your competitor is WalMart.

    They can afford to undercut you until you go out of business, then they can charge whatever the market will bear.

    • @Maggoty
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      1 day ago

      Which is a lot on inelastic goods like food.

      Edit- to use the correct term

      • @grue
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        51 day ago

        *inelastic

        • @Maggoty
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          21 day ago

          I always fuck that up. Every time.

          • @girthero
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            11 day ago

            t⁸í::: spoiler Title

            :::~~~~